If you're in the market for a home, you'll go through many steps before you finally close the deal and move into your new home. Our REALTORS® are experienced and knowledgeable about the home-buying process and can make the process go as smoothly as possible.
They offer the following six tips that every home buyer needs:
- Consider the size of your down payment.
Most home loans require you to make a down payment. If you make a relatively large down payment, you may receive better loan terms, and you'll be lowering your monthly mortgage payments as well as the amount of interest you'll pay over the loan period. On the other hand, you don't want to make a down payment that's so large you won't have money for emergency costs like a car or home repair. The ideal down payment amount will enable you to obtain a mortgage loan with good terms but won't leave you stretched too thin.
- Get pre-approved for a home loan.
One of the first steps to take when you're looking to buy a home is to get pre-approved for a loan. You'll need to provide information such as bank statements and proof of your income to the lender, who will give you a document showing the size of the home loan you should be able to get. This lets you know what you'll be able to afford so you can pinpoint a price range. You'll also be able to show sellers that you're a serious buyer who can afford the home. And you're also less likely to have financing-related delays once you're further into the home-buying process.
- Maintain your financial status.
After you've been pre-approved for a home loan, make sure you don't make any big changes in your finances. Your lender will check your credit report again before you close on your home, and if you've started to make late payments, taken out another loan, or now owe more on your credit cards, you could put your home loan in jeopardy.
- Make a list of your priorities.
Before you start looking at homes, make a list of what you need in a home and what would be nice to have. If you have young kids, for example, you might prioritize living in an area with excellent schools and a home with a certain number of bedrooms and a big lawn. This helps you prioritize what's most important to you.
- Don't go overboard in a bidding war.
If it's a seller's market or if there's a lot of competition for a home you're interested in, you may be tempted to get into a bidding war. Don't let competition for a home lead to mistakes such as failing to make the sale contingent on a home inspection or paying more than the home is worth. Your real estate agent can show you comps of similar homes to make sure you're not overpaying.
- Consider all the costs associated with a home purchase and ownership.
When you're looking to buy a home, it's easy to think about a downpayment and monthly mortgage payment and forget other related costs. For example, you'll need to pay for a home inspection, appraisal fees, attorney fees, and closing fees (which are usually about 2-5% of your home loan). Make sure to budget for these costs, so you're not surprised by them.
Contact Ayre/Rhinehart REALTORS® if you're looking to buy a home and would like to see Midland homes for sale. We'll help you navigate the ins and outs of the home-buying process, offering tips to help you along the way.